Correlation Between CapitaLand Integrated and Federal Realty
Can any of the company-specific risk be diversified away by investing in both CapitaLand Integrated and Federal Realty at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CapitaLand Integrated and Federal Realty into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between CapitaLand Integrated Commercial and Federal Realty Investment, you can compare the effects of market volatilities on CapitaLand Integrated and Federal Realty and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CapitaLand Integrated with a short position of Federal Realty. Check out your portfolio center. Please also check ongoing floating volatility patterns of CapitaLand Integrated and Federal Realty.
Diversification Opportunities for CapitaLand Integrated and Federal Realty
-0.39 | Correlation Coefficient |
Very good diversification
The 3 months correlation between CapitaLand and Federal is -0.39. Overlapping area represents the amount of risk that can be diversified away by holding CapitaLand Integrated Commerci and Federal Realty Investment in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Federal Realty Investment and CapitaLand Integrated is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CapitaLand Integrated Commercial are associated (or correlated) with Federal Realty. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Federal Realty Investment has no effect on the direction of CapitaLand Integrated i.e., CapitaLand Integrated and Federal Realty go up and down completely randomly.
Pair Corralation between CapitaLand Integrated and Federal Realty
Assuming the 90 days horizon CapitaLand Integrated Commercial is expected to generate 4.3 times more return on investment than Federal Realty. However, CapitaLand Integrated is 4.3 times more volatile than Federal Realty Investment. It trades about 0.1 of its potential returns per unit of risk. Federal Realty Investment is currently generating about -0.03 per unit of risk. If you would invest 136.00 in CapitaLand Integrated Commercial on September 14, 2024 and sell it today you would earn a total of 9.00 from holding CapitaLand Integrated Commercial or generate 6.62% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
CapitaLand Integrated Commerci vs. Federal Realty Investment
Performance |
| Timeline |
| CapitaLand Integrated |
| Federal Realty Investment |
CapitaLand Integrated and Federal Realty Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with CapitaLand Integrated and Federal Realty
The main advantage of trading using opposite CapitaLand Integrated and Federal Realty positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CapitaLand Integrated position performs unexpectedly, Federal Realty can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Federal Realty will offset losses from the drop in Federal Realty's long position.| CapitaLand Integrated vs. Regency Centers | CapitaLand Integrated vs. Getty Realty | CapitaLand Integrated vs. Site Centers Corp | CapitaLand Integrated vs. Brixmor Property |
| Federal Realty vs. Agree Realty | Federal Realty vs. Regency Centers | Federal Realty vs. Netstreit Corp | Federal Realty vs. Kimco Realty |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.
Other Complementary Tools
| FinTech Suite Use AI to screen and filter profitable investment opportunities | |
| Idea Optimizer Use advanced portfolio builder with pre-computed micro ideas to build optimal portfolio | |
| Cryptocurrency Center Build and monitor diversified portfolio of extremely risky digital assets and cryptocurrency | |
| Portfolio File Import Quickly import all of your third-party portfolios from your local drive in csv format | |
| Technical Analysis Check basic technical indicators and analysis based on most latest market data |